Computer Programs & Systems, Inc. (NASDAQ:CPSI) has seen an increase in activity from the world’s largest hedge funds lately.
According to most traders, hedge funds are assumed to be underperforming, old investment tools of the past. While there are more than 8000 funds with their doors open at present, we hone in on the masters of this group, around 450 funds. It is estimated that this group has its hands on the majority of the hedge fund industry’s total asset base, and by keeping an eye on their best investments, we have unearthed a number of investment strategies that have historically outstripped the S&P 500 index. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 23.3 percentage points in 8 months (see the details here).
Equally as beneficial, positive insider trading activity is a second way to parse down the world of equities. There are a number of motivations for an upper level exec to get rid of shares of his or her company, but only one, very clear reason why they would initiate a purchase. Plenty of academic studies have demonstrated the useful potential of this tactic if you know what to do (learn more here).
Keeping this in mind, let’s take a glance at the latest action regarding Computer Programs & Systems, Inc. (NASDAQ:CPSI).
What does the smart money think about Computer Programs & Systems, Inc. (NASDAQ:CPSI)?
At Q1’s end, a total of 9 of the hedge funds we track were long in this stock, a change of 13% from one quarter earlier. With hedgies’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes considerably.
According to our comprehensive database, Visium Asset Management, managed by Jacob Gottlieb, holds the largest position in Computer Programs & Systems, Inc. (NASDAQ:CPSI). Visium Asset Management has a $4.4 million position in the stock, comprising 0.1% of its 13F portfolio. On Visium Asset Management’s heels is Jim Simons of Renaissance Technologies, with a $3.2 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions include Joel Greenblatt’s Gotham Asset Management, D. E. Shaw’s D E Shaw and Cliff Asness’s AQR Capital Management.
As industrywide interest jumped, key money managers were breaking ground themselves. D E Shaw, managed by D. E. Shaw, established the largest position in Computer Programs & Systems, Inc. (NASDAQ:CPSI). D E Shaw had 1.9 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $1.2 million position during the quarter. The following funds were also among the new CPSI investors: Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Chuck Royce’s Royce & Associates.
What have insiders been doing with Computer Programs & Systems, Inc. (NASDAQ:CPSI)?
Insider purchases made by high-level executives is most useful when the company in question has experienced transactions within the past 180 days. Over the latest 180-day time frame, Computer Programs & Systems, Inc. (NASDAQ:CPSI) has seen 3 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Computer Programs & Systems, Inc. (NASDAQ:CPSI). These stocks are Medidata Solutions Inc (NASDAQ:MDSO), Merge Healthcare Inc. (NASDAQ:MRGE), WebMD Health Corp. (NASDAQ:WBMD), MedAssets, Inc. (NASDAQ:MDAS), and Quality Systems, Inc. (NASDAQ:QSII). This group of stocks belong to the healthcare information services industry and their market caps are closest to CPSI’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Medidata Solutions Inc (NASDAQ:MDSO) | 11 | 0 | 9 |
| Merge Healthcare Inc. (NASDAQ:MRGE) | 11 | 2 | 0 |
| WebMD Health Corp. (NASDAQ:WBMD) | 15 | 0 | 0 |
| MedAssets, Inc. (NASDAQ:MDAS) | 18 | 0 | 8 |
| Quality Systems, Inc. (NASDAQ:QSII) | 10 | 1 | 0 |
With the returns demonstrated by our research, retail investors must always pay attention to hedge fund and insider trading activity, and Computer Programs & Systems, Inc. (NASDAQ:CPSI) is an important part of this process.
